Estate planning is all about deciding how your estates and assets will be divided or managed after your passing. An estate plan can also go into effect if you are incapacitated or unable to manage your estate. Planning today ensures your estate is handled as you envisioned without any questions or misunderstandings. This piece covers the basics of estate planning, its benefits, and what's involved.
Understanding what's involved in planning the management of an estate starts with defining the undertaking; what is estate planning? The simple definition of estate planning is "preparing the tasks and steps to manage your asset base in the event of incapacitation or death."
Estate planning uses various devices, such as a will, trust, or insurance policy. The objective is to lay out your wishes and ensure the estate is managed or transferred in the most tax-advantaged manner. You may also need an estate planning financial advisor to understand the process fully.
The basics of estate planning are its documents. To set up plans, you'll need various documents to prove ownership of the assets and declare how they'll be handled following death or incapacitation. Here are the popular documents making up your estate plan:
Financial estate planning is prevalent among people in their 50s, but everyone needs it. You can start planning at any age, provided you have existing assets/property. You should also plan with taxes in mind. You don't want your heirs paying hefty estate and inheritance taxes. An estate planning financial advisor can help you avoid probates and unnecessary taxes.
Financial estate planning benefits you, your children, heirs, and dependents. It involves managing all your assets, including cars, cash, clothes, jewelry, art, houses, savings, investments, land, retirement accounts, and more. Here are five top advantages of planning your estate:
Hiring an estate planning financial advisor is the best decision for those looking to plan their future. Estate planning is a complicated undertaking with many aspects to consider. Involving a financial estate planner will provide the professional insight and experience needed to meet your goals. Find out more about estate planners and how they can help.
Why do I need to have an estate plan?You've worked hard to own an estate and deserve to share it per your wishes. Estate planning allows you to determine how the estate will be divided or managed when you can no longer make such decisions due to death or incapacitation.
What should estate planning cover?Estate planning should cover all assets and property, including investments, savings, and retirement plans. It involves declaring all your estate and how they'll be distributed.
What is the difference between a will and estate planning?A will is a legal document expressing your last wishes about how your property should be shared. Estate planning involves planning for asset distribution, power of attorney, and custody, in the event of death or incapacitation.
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